Yield and APY Explained

A pool pays 10% APR, with interest added to your balance every day. What is its APY?

• Exactly 10%, because APR and APY are the same thing
• A little more than 10%, because daily interest earns interest too
• Less than 10%, because compounding has a cost

A pool pays its rewards in its own token. What decides what those rewards are worth to you?

• The APY shown on the day you deposited
• The number of tokens you receive
• The price the token sells for when you actually sell it